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New Proposal Threatens Tier 1 Tax Status in The Netherlands

11th July 2018

The Dutch government is planning to eliminate tax deductions for coupons on the Tier 1 securities issued by banks and insurers, after the European Commission said that their tax treatment could raise state aid concerns.

At the Association of Mutual Insurers and Insurance Cooperatives in Europe (AMICE) Congress 2018 in Stockholm, insurers said Solvency II regulations have required them to add resources and personnel, while limiting their ability to diversify

Investor appetite for high-value insurance M&A increasing – WTW

9th January 2018

The number of M&A deals may be set to decrease, but insurers and investors will increasingly be looking to snap up higher-value insurance acquisitions.

Are you planning to undertake an acquisition over the next year or two? IRC’s Solvency II eligible sub debt product is the ideal product to capitalise such growth ambitions. Additionally our LIBRA product provides capital flexibility to complete such transactions swiftly and efficiently.

Solvency II drives demand for new Maiden Re product

12th December 2017

A new product launched by Maiden Re that allows insurers with limited access to the capital markets pre-committed access to subordinated debt funding will be particularly valuable to companies because regulations such as Solvency II force insurers to disclose their solvency ratio, according to the reinsurer’s CEO.

MCR Shock – testing the strength of the SCR coverage ratio

15th November 2017

Under Solvency II, the SCR coverage ratio has become the de-facto measure of an insurer’s capital strength. But how reliable an indicator is it? Cat Drummond, Partner at LCP, explores the capital resilience of the top non-life insurers int he UK and Ireland by testing their SCR coverage ratio against an MCR shock.

99 insurers sailing close to the wind

9th November 2017

Analysis of 1,600 solo firms collected and processed by Solvency II Wire Data reveals that 21 firms breached their SCR ratio as of 31 December 2016. This article gives an analysis of the lower end of the SCR ratio spectrum.

Maiden Libra- a new way to balance risk and capital

1st November 2017

Libra is the well-known astrological symbol of balance. Patrick Haveron, President of Maiden Re, explains how Maiden Libra, it’s unique hybrid capital solution can help small to mid-size insurers keep their risk/capital balance in an increasingly tough and uncertain operating environment

Solvency II Wire: Topsy-Turvy SCR Ratios

4th July 2017

Daragh Clune, Chief Investment Officer at IRC, on why the Solvency II SCR ratio can sometime be higher than the MCR ratio.

Analysis of the Solvency II public disclosures in the German market (Solvency II Wire 14/6/2017) uncovered a number of firms with a lower MCR ratio (Minimum Capital Requirement) than SCR ratio (Solvency Capital Requirement). This is surprising given that the MCR is the lower of the two capital requirements and it would be expected that the MCR ratio would be higher (see The SCR: early warning system or panic button?).

EIOPA publishes first Risk Dashboard under Solvency II

2nd March 2017

On 28 February 2017 EIOPA published its new Risk Dashboard for the first time since the implementation of the Solvency II regime. Although Solvency II implied a major change in the methodological framework for the calculation of the solvency capital requirements, the initial transition to the new regime appears to have gone smoothly. The results for the third-quarter 2016 show that the low-yield environment and market risks continue to be a major challenge for the European insurance sector according to EIOPA.
The dashboard is a quarterly publication summarising the main risks and vulnerabilities in the European insurance sector by using a set of indicators grouped into seven risk categories: macro risks, credit risks, market risks, liquidity and funding risks, profitability and solvency risks, interlinkages and imbalances risks and insurance (underwriting) risks. An additional category “market perceptions” gives insight on how the insurance industry is perceived by financial markets.

EIOPA publishes results of 2016 Insurance Stress Tests

21st December 2016

EIOPA published the results of their most recent stress test exercise on 15 December. These stress tests represent one of the regular supervisory tools that help to assess the resilience of the insurance sector to potential adverse market developments. The tests covered 236 life companies in 30 countries and the results were published on an aggregated basis rather than company by company.

Are you ready for the Pillar 3 public disclosures under Solvency II?

23rd November 2016

The Pillar 3 disclosures will be made in 2017 but based on the year-end 2016 balance sheet. This imminent public disclosure has led to many firms starting to assess the adequacy of their capital levels, solvency and risk management while bearing in mind that their figures will be directly compared to that of their peer groups.

A false dawn for restricted tier 1 debt?

13th October 2016

The market for restricted tier 1 debt was kick-started last month with an issue by Gjensidige, the Norwegian insurer, who sold NOK1bn in restricted tier 1 notes. Insurance Regulatory Capital discussed the market with Insurance ERM.

Solvency II Ratios Move Into the Spotlight

23rd May 2016

According to Fitch, the rating agency, investors in insurance companies have begun to use SCR data to analyse not only the financial strength of the companies they have invested in, but also the efficiency of capital use and as a comparator to other companies in the sector.

Fewer than half of EU insurers have a coordinated approach to capital management

30th March, 2016

Fewer than half of European insurers have a dedicated capital management department, according to Deloitte’s 2016 EMEA Capital Management in Insurance Survey. Optimising capital under solvency II will be the key area for capital management over the next 5 years.

Last week, the US Department of Transportation’s National Highway Traffic Safety Administration (NHTSA), wrote to Google, saying it will now consider the computer and software in ta self-driving car as the “driver”.

EIOPA seeks to promote dialogue between Regulators and Audit Firms under Solvency II

16th February, 2016

On the 3rd of February, 2016 EIOPA published a consultation paper seeking views on facilitating an effective dialogue between auditors that carry out statutory audit of (re) insurance companies and the relevant Insurance Regulator.

BoE insurance supervisor says EU capital rules off to smooth start

27th January, 2016

The introduction of new European Union rules forcing insurers to hold enough capital to protect policyholders has gone well though some tweaks will be needed, Britain’s top insurance regulator said on Wednesday.

There has been concern among regulators about potential volatility in insurance company shares as investors compare the solvency capital ratio (SCR), a new core benchmark of health, that insurers now have to publish.

EIOPA provides update on consumer trends

Solvency II compliance imminent: Regulatory harmonisation delayed.

7th December 2015

While all European insurers are required to be compliant with the Europe wide risk-based system by January 1 2016, EIOPA has allowed Insurance Regulators significant leeway in both how and when they implement the new Solvency II standard.

Publication of legislation transposing Solvency II into Irish Law

Reinsurance or Subordinated Debt? Why not both

20th November 2015

Under Solvency II the landscape changes dramatically, given that it can be a great help for insurance companies, particularly for small companies and mutual insurance companies, in their necessary commitment to increasing competitiveness and to reinforce and/or protect their solvency capital.

Europe’s largest insurance markets have continued to show some signs of recovery, with many experiencing top-line growth. In general, the increases in total gross written premium (GWP) come following a number of years muted development and even decline, and there is a sense of optimism that this momentum will continue.

EIOPA advises to set up a new asset class for high-quality infrastructure investments under Solvency II

Maiden Re looks to Europe

16 September 2015

From ReactionsNet.com’s Rendez-vous Reporter: “Maiden Re’s collateralised reinsurance solutions are available throughout the EU to help insurance companies comply with the coming Solvency II requirements”, says Pat Haveron, President of Maiden Reinsurance.

Solvency II to feed subordinated debt demand

15 September 2015

From ReactionsNet.com’s Rendez-vous Reporter: “Insurers have been advised by Regulators not to wait until the last minute before understanding their capital requirements and securing capital”, says Oliver Tattan, CEO of Insurance Regulatory Capital.

Maiden Re steers a specialist course

13 September 2015

From ReactionsNet.com’s Rendez-vous Reporter: “The trend for industry consolidation may benefit Maiden Re as it allows the reinsurer to be more nimble than its competitors”, says Art Raschbaum, Maiden Re’s CEO.

Specialist insurers such as captives are ‘not well-catered for’ by Solvency II’s standard formula which is adding to the need for European captives to change the way they are managed, according to a new report by AM Best.

“Vigilance in the run-up to Solvency II”, Insurance Day

19 August 2015

“With Solvency II just around the corner, the market is addressing a number of issues, not least whether the US, Bermuda and other jurisdictions will be granted reinsurance equivalence status in time, according to Martin Membery, one of London’s leading insurance regulatory, corporate restructuring and M&A lawyers.”

UK regulator publishes senior manager rules, August 17

18 August 2015

UK watchdog the Prudential Regulation Authority (PRA) has published its final version of the Senior Insurance Managers Regime (SIMR), which will introduce what experts have described as a far more complex set of rules for insurers.

The drivers for the new regime include the need to bring the UK in line with Solvency II, which comes into effect on 1 January 2016.

The User Manual contains the steps on how to carry out the calculations through the published RFR coding. Using the manual, the aim of the exercise is to collect input from stakeholders that would help improve the coding and spot possible errors.

Subordinated debt is a prudent approach for mutual insurance companies seeking to ensure judicious capital management and maintenance. It is a structural and long term solution for a mutual’s capital requirements.Read more

With the advent of Solvency II, it is imperative that executive management considers more carefully their company’s access to sources of capital. Insurance Regulatory Capital offers capital solutions through acting as a conduit between insurers and investors.Read more

Subordinated debt has been pre-approved by European Insurance Regulators to function as regulatory capital under Solvency II. Priced lower than equity but with many similar qualities, cash is transferred directly to the issuing insurer’s balance sheet.Read more

Maiden Holdings was founded more than 30 years ago as Motors Re Management Corp., which ultimately expanded into GMAC RE.